February 14, 2007
February 13, 2007
MEDC-Assisted Projects Include $99 Million in Capital Investment
Governor Jennifer M. Granholm today announced four companies are expanding in Michigan with assistance from the Michigan Economic Development Corporation (MEDC) and a downtown redevelopment project in Detroit is being backed by the MEDC with support from the Michigan State Housing Development Authority (MSHDA). In all, the projects are expected to create 1,044 Michigan jobs and involve more than $99 million in new capital investment.
"These are the types of high-tech companies and community development projects that will strengthen Michigan as a place to live, learn and earn," Granholm said. "These investments will create good-paying jobs and vibrant cities that our economic plan is working to grow across the state."
The five projects announced today:
- FEV Engine Technology Inc. will invest $4.3 million to expand its operations in Auburn Hills and create 180 new jobs. A state tax credit valued at $1.1 million over seven years helped convince the company to grow in Michigan over a competing site in South Carolina. To support the expansion, the city of Auburn Hills has proposed a 12-year tax abatement valued at $288,000.
- Landon IP Inc. is investing $3.9 million to open offices in Southfield. The Alexandria, VA-based company's new operations will create 299 new jobs. A state tax credit valued at $2.1 million over five years helped convince the company to choose Michigan over a competing site in California. The city of Southfield has proposed a seven-year tax abatement valued at $68,000 to support the project.
- TechSmith Corp will invest more than $18 million to build a new world headquarters in the Michigan State University Corporate Research Park located within the Lansing Regional SmartZoneSM. The project is expected to create at least 105 new jobs, including 75 or more directly by the company. A state tax credit valued at $1.2 million over 10 years helped convince the company to locate its new headquarters in Michigan over a competing site in Indiana. In addition to making space available within its SmartZone, the city of Lansing has proposed a 12-year tax abatement valued at $693,000 to support the project.
- Visteon will invest $35 million to build a state-of-the-art manufacturing plant in Highland Park. The plant is expected to create 353 new jobs, including 175 directly by the company. A state tax credit valued at $1.73 million over seven years helped convince the company to invest in Michigan over a competing site in Ohio. The city of Highland Park has proposed a 10 year tax abatements valued at $4.3 million to support the project.
- City of Detroit, teaming with Focus: HOPE, will utilize state and local tax capture valued at $4.9 million for a phased development along Oakman Boulevard just east of the Focus: HOPE campus in Detroit. The project will include a conference and education center, retail stores, development of local park space, replacement of run-down infrastructure and eventual adaptive re-use of the old Michigan Bell buildings. The project is expected to create up to 120 full- and part-time jobs and include $38 million in capital investment.
"We are stepping up our efforts to win new high-tech investment and jobs," MEDC President and CEO James C. Epolito said. "Michigan has the right talent and climate to help companies compete and thrive in today's global economy."
In her 2007 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005, the governor and the MEDC have announced the creation or retention of more than 167,000 jobs as a result of targeted assistance provided by the MEDC.
"Over the past years, MSHDA and MEDC have developed a very effective working relationship, and we are proud to collaborate with MEDC on these projects." MSHDA Executive Director Michael DeVos said. "This partnership will go a long way in not only helping develop and revitalize traditional downtowns and commercial centers but also improve the quality of life for those living in these communities."
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more
information on the MEDC's initiatives and programs, visit the Web site at www.michigan.org.
MSHDA is a quasi-state agency that provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engage in community economic development activities, and address homeless issues. MSHDA's loans and operating expenses are financed through the sale of tax-exempt and taxable bonds and notes to private investors, not from state tax revenues. For more information on MSHDA programs and initiatives, visit the Web site at www.michigan.gov/mshda.
